Chegg, Inc. operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials.
The last earnings update was 26 days ago.
More info.

The calculations below outline how an intrinsic value for
Chegg
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Often investors are willing to pay a
premium
for a company that has a high dividend or the potential for future growth.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for
Chegg's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.

Price based on past earnings

Are
Chegg's earnings available for a low price, and how does
this compare to other companies in the same industry?

High Growth Checks

Chegg's earnings are expected to grow significantly at over 20% yearly.

Chegg's revenue is expected to grow significantly at over 20% yearly.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.

Past performance checks

Has the earnings growth in the last year exceeded that of the
Consumer Services
industry? (1 check)

Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)

Is the Return on Equity (ROE) higher than 20%? (1 check)

Is the Return on Assets (ROA) above industry average? (1 check)

Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Chegg
has a total score of
0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

CHGG Management

Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.

CEO

DanRosensweig

COMPENSATION

$9,117,507

AGE

56

TENURE AS CEO

9.3 years

CEO Bio

Mr. Daniel Lee Rosensweig, also known as Dan, has been the Chief Executive Officer and President of Chegg, Inc. since February 2010. Mr. Rosensweig serves as a Senior Advisor of TPG Capital, L.P. He serves as a Senior Advisor of TPG Growth. He serves as an Investor and Advisor of Ozy Media, Inc. and Criteo Corp. He serves as an Executive in Residence of Columbia Business School. He serves as Chief Executive Officer and President of Chegg com at CourseRank LLC. Prior to joining Chegg, Inc. in February 2010, he served as the Chief Executive Officer and President of RedOctane Inc. since April 2009. He served as the Chief Executive Officer and Head\President of Guitar Hero Business at Activision Blizzard, Inc. and Activision Publishing, Inc. since March 2009. Mr. Rosensweig was responsible for shepherding the Santa Monica company's popular game, which was co-developed by Activision's Red Octane and Neversoft studios, launching Guitar Hero 5, Band Hero and DJ Hero in 2009. He joined RedOctane in March 2009. He served as the Chief Executive Officer and President of ZDNet, Inc. from January 1999 to July 2000 and from 1997 to July 2000 respectively. He was an Operating Principal of Quadrangle Capital Partners LP. From 2007 to 2009, Mr. Rosensweig served as an Operating Principal and Partner of Quadrangle Group LLC, where he focused on its media and communications private equity business. He served as President of Ziff Davis Internet. Prior to joining the Quadrangle Group in August 2007, he served as the Chief Operating Officer of Yahoo! Inc. (now Altaba Inc.) from April 2002 to March 31, 2007, where he oversaw its worldwide operations including its product development, marketing, advertising sales and international operations and North American operations. He joined Yahoo in April 2002. He served as the President of CNET Networks, Inc. since October 2000. He was 18-year veteran of Ziff-Davis, where he served in many capacities. He served as the President of Ziff-Davis Internet Publishing Group since 1997, where he oversaw magazine titles such as Inter@ctive Week and Yahoo! Internet Life. He served as an Executive Vice President of ZD Inc.'s Internet Publishing Group from 1996 to 1997. From 1995 to 1996, he served as a Vice President of PC Magazine Group and served as its Publisher from 1994 to 1995. Since joining ZD Inc. in 1983, he served in a number of positions, including Associate Publisher positions at PC Magazine, Computer Shopper and PC Sources. He served as the Managing Director of TVG Capital Partners Limited. Mr. Rosensweig has been Co-Chairman at Chegg, Inc since 2018 and had been its Chairman from March 2010 to 2018. Mr. Rosensweig has been a Director of Adobe Systems Incorporated since January 12, 2009. He serves as a Director of Fender Musical Instruments Corporation, Deja News Inc., Social Programming Network, Inc, Adobe Systems Software Ireland Limited, Reputation.com (UK) Limited, Reputation.com, Inc., Comedy World and Katalyst Media. He participates on the Advisory Board of the non-profit DonorsChoose.org. He was Member of Advisory Board at Criteo Corp. He serves as a Trustee for the James Beard Foundation and Hobart and William Smith Colleges. He serves as a Member of the Advisory Board at Mail.com Media Corporation and served as its Director. He served as a Director of Time Inc. from July 3, 2017 to January 31, 2018. He served as a Director and Member of the Board of Advisors at Penske Media Corporation. He served as a Director of Skyrider, Inc., since May 1, 2007. He served as a Director of Ziff-Davis Inc. since February 10, 1999. He served as a Director of CNET Networks, Inc. He served as a Member of Advisory Board at Criteo SA. He has successful, high-growth consumer business experience. Mr. Rosensweig has a Bachelor of Arts degree in Political Science from Hobart College, Geneva, New York.

CEO Compensation

Dan's compensation has increased whilst company is loss making.

Dan's remuneration is higher than average for companies of similar size in United States of America.

Management Team Tenure

Average tenure and age of the
Chegg
management team in years:

5

Average Tenure

54

Average Age

The average tenure for the Chegg management team is over 5 years, this suggests they are a seasoned and experienced team.

CHGG News

Simply Wall St News

Is Chegg, Inc.'s (NYSE:CHGG) CEO Being Overpaid?

View our latest analysis for Chegg How Does Dan Rosensweig's Compensation Compare With Similar Sized Companies? … Thus we can conclude that Dan Rosensweig receives more in total compensation than the median of a group of companies in the same market, and of similar size to Chegg, Inc.. … We compared the total CEO remuneration paid by Chegg, Inc., and compared it to remuneration at a group of similar sized companies.

Before You Buy Chegg, Inc. (NYSE:CHGG), Consider Its Volatility

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Are Insiders Selling Chegg, Inc. (NYSE:CHGG) Stock?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … In the last twelve months, the biggest single sale by an insider was when the Director, Theodore Schlein, sold US$1.0m worth of shares at a price of US$28.84 per share. … That means that an insider was selling shares at slightly below the current price (US$36.98).

Announcing: Chegg (NYSE:CHGG) Stock Soared An Exciting 893% In The Last Three Years

But when you hold the right stock for the right time period, the rewards can be truly huge. … As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. … So we're surprised that the share price has soared by 115% each year over that time.

Chegg, Inc. (NYSE:CHGG): Time For A Financial Health Check

CHGG’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … How does CHGG’s operating cash flow stack up against its debt?

Does Chegg, Inc.'s (NYSE:CHGG) CEO Pay Reflect Performance?

First, this article will compare CEO compensation with compensation at similar sized companies. … After that, we will consider the growth in the business. … How Does Dan Rosensweig's Compensation Compare With Similar Sized Companies?

Chegg, Inc. (NYSE:CHGG): Cash Is King

I’ve analysed below, the health and outlook of Chegg’s cash flow, which will help you understand the stock from a cash standpoint. … Chegg generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … The two ways to assess whether Chegg’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Should You Be Worried About Insider Transactions At Chegg Inc (NYSE:CHGG)?

So before you buy or sell Chegg Inc (NYSE:CHGG), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … It's not ideal to see that insiders have sold at around the current price of US$27.95

Is Chegg Inc's (NYSE:CHGG) CEO Being Overpaid?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Dan Rosensweig's Compensation Compare With Similar Sized Companies. … It would therefore appear that Chegg Inc pays Dan Rosensweig more than the median CEO remuneration at companies of a similar size, in the same market

At US$27.30, Is Chegg Inc (NYSE:CHGG) A Buy?

saw a significant share price rise of over 20% in the past couple of months on the NYSE. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on Chegg’s outlook and valuation to see if the opportunity still exists

CHGG Company Info

Description

Chegg, Inc. operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks. Its digital products and services include Chegg Study, which helps students master challenging concepts on their own; Chegg Writing that enables automatically generate sources in the required formats, when students need to cite their sources in written work; Chegg Tutors that allow students find human help on its learning platform through a network of live tutors; and Chegg Math solver, which helps students to get math help through self-guided and individualized math solutions The company also offers Other Services, such as Test Prep, internships, college admission and scholarship services; rents and sells print textbooks and eTextbooks; and offers supplemental materials and textbook buyback services. Chegg, Inc. was founded in 2003 and is headquartered in Santa Clara, California.

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